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2022-03-31-accounts

COMPANY NUMBER: 3360545 CHARITY NUMBER: 1063589

ACORN RECOVERY PROJECTS (A COMPANY LIMITED BY GUARANTEE)

Report and Financial Statements

Year ended 31 March 2022

Acorn Recovery Projects Company number: 3360545

Contents

ontents
Page
Directors, Executive Officers, Advisors and Bankers 1
Report of the Directors 2 - 7
Independent Auditor’s Report 8 - 9
Statement of Financial Activities 10
Statement of Financial Position 11
Notes to the Financial Statements 12 – 21

Acorn Recovery Projects Company number: 3360545

Directors, Executive Officers, Advisors and Bankers

Directors

Richard Jones CBE (Chair) Karen Ainsworth (Vice-Chair) Andrew Henderson Grahame N Elliott CBE Joanne Peters (appointed 25 March 2022) Kelly Shaw Mushtaq Khan Sharon Livesey Lynn McCracken (resigned 28 April 2021) Sallie Bridgen (appointed 23 July 2021) Susan Moore (appointed 23 July 2021)

Executive Officers:
Group Chief Executive Anthony Duerden
Executive Director of Group Finance Stephen Aggett
and Company Secretary
Executive Director of Group Operations Helen Thompson
Executive Director of Organisational
Development Vicki Howard
Company Lead:
Head of Wellbeing & Support Services Stacey Garvin
Registered Office Centenary Court
Croft Street
Burnley
BB11 2ED
Registered Number 03360545
Charity Number 1063589
External Auditor Crowe U.K. LLP
The Lexicon
Mount Street
Manchester
M2 5NT
Solicitor Forbes Solicitors
Rutherford House
4 Wellington Street
St. Johns
Blackburn
BB1 8DD
Bankers National Westminster Bank
6thFloor
1 Spinningfields Square
M3 3AP

1

Acorn Recovery Projects Company number: 3360545

Report of the Directors

The Directors are pleased to present their annual Directors’ Report together with the financial statements of the charity for the year ending 31 March 2022 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The Directors are also the company trustees for Charity purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 October 2019).

Structure, Governance and Management Structure

Acorn Recovery Projects is a registered charity with the Charity Commission and is a company limited by guarantee. Acorn owns 100% of the issued share capital of Delphi Medical Consultants Limited (Company No. 6944767) and Delphi Medical Limited (Company No. 69014150). Its registered office is Centenary Court, Croft Street, Burnley, BB11 2ED.

Group Structure

Syncora Limited (registered number 11171831) was established in 2018 as a holding company with a common board for each of its subsidiaries, which are; SafeNet Domestic Abuse and Support Services Ltd (“Safenet”), Acorn Recovery Projects Ltd (“Acorn”) and Calico Enterprise Ltd (“Enterprise”). This arrangement was made to enhance continued growth by integrating service and company offers and enabling competition with larger scale ‘lead’ providers.

Acorn has been successfully providing abstinence based drug and alcohol treatment since 1997, originally trading as ADAS (Alcohol and Drug Abstinence Service). The organisation changed its legal and operating name formally to Acorn Recovery Projects on the 1 November 2013, when it joined the Calico Group. The Calico Group is the ultimate parent of the Syncora Group of Companies.

Delphi Medical Limited and Delphi Medical Consultants Limited (“Delphi”), subsidiaries of Acorn, provide clinical and psychosocial detoxification services which compliments existing services provided by Acorn. Delphi is the lead provider of integrated substance misuse services in Blackpool and in Manchester and Buckley Hall Prisons, working alongside Acorn.

Public Benefit

The Directors have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing aims and objectives and in planning the company’s future activities. In particular, the Directors consider how planned activities will contribute to the aims and objectives that have been set.

Acorn undertakes and manages its activities in line with the above objectives through the provision of support contracts and work initiatives. The Directors receive regular updates on performance and feel that the objectives have been achieved as set out in the next section.

The programmes delivered by the Charity are available to anyone suffering from alcohol or drug addiction problems. Clients are referred by the judicial system or because of their own willingness to recover from addiction. The impact on the general society at large is significant if individuals abstain from their addiction as there is a clear linkage between drug and alcohol addiction and crime. Therefore, by helping people achieve and sustain abstinence, society benefits.

Objectives and Activities

Acorn Recovery Projects was incorporated as a not for profit, charitable company limited by guarantee to provide an innovative range of recovery services which enable individuals and their families to break free from drug, alcohol and other addictions. In order to help to find not just immediate recovery, but emotional, social, lifelong recovery.

At Acorn, we always see the person behind the illness. The success comes in large part from our staff, 85% of whom, at all levels within the organisation, have personal experience of addiction and can understand and empathise with others in similar situations.

Acorn support people throughout their recovery journey in a compassionate way, focussing on the sustainable lifestyles free from susbstance misuse. We provide a variety of supported housing options to help clients on their journey towards fully independent living.

Our purpose is to be a catalyst for change in people’s lives and to create opportunities to help people make the positive changes they seek, contributing to the Calico Group purpose of providing quality services that make a real difference to peoples’ lives. This is achieved through the delivery of social enterprise, skills and support contracts. The achievements are summarised in the sections below.

Acorn's charitable objectives are to:

2

Acorn Recovery Projects Company number: 3360545

Report of the Directors (continued)

Objectives and Activities (continued)

Acorn supports people through their recovery journey in a passionate way – going ‘One Step Further’ with individuals to help them achieve a life worth living.

Acorn’s core values are centred around achieving abstinence based recovery.

Our extensive range of recovery programmes include:

As part of the wider Calico Group, Acorn is able to widen the available support to its customers, particularly around services such as supported housing and employment opportunities where we are working with our internal partners in Calico Homes and Enterprise.

Achievements and Performance

Operational delivery of services during 2021/22 has continued to affected by the pandemic and have adapted delivery models to reflect changing circumstances. At the height of the pandemic some of our services moved online, others provided support virtually and our residential services had to redesign areas to comply with social distancing requirements. They have continued to manage Covid-19 outbreaks, deal with high levels of anxiety and continue to motivate residents and help them feel safe.

All services have continued to perform operationally and financially, with most contracts being extended and a small number of new contracts secured. Acorn have benefitted from several grant applications and donations.

Residential Rehabilitation

Acorn operate two residential rehab sites, one in Burnley and one in Stockport, and receive referrals from Local Authorities and other commissioners for placements of up to 12 weeks. In 2021/22 there have been over 100 clients receiving residential care.

Volunteering

One of the cornerstones is Acorn’s volunteer programme which is an integral part of the journey to recovery. For many of our clients who become volunteers, one of the key features of staying well is the act of being a volunteer. The impact is based not on short term ‘fixes’ but a peer-led approach based on years of tried and tested experience of what really works. The volunteer programmes are robust, where volunteers are placed carefully according to their needs, skills and aspirations.

Volunteers within Acorn allow the organisation to utilise the most fundamental skills of lived experience and a chance to motivate people daily with stories and evidence of life changing possibilities.

During 21/22 over 5,000 hours of volunteering time were delivered by Acorn volunteers.

Counselling

Acorn offers private 1-to-1 counselling further diversifying our offer and utilising the unique skills of our counselling and therapy team. This service has been available virtually during the pandemic. Acorn remain on the local NHS Trust’s provider framework for IAPT (Improving Access to Psychological Therapies) interventions.

Community Services

Acorn works within a range of community settings alongside partner agencies including Change Grow Live in Manchester and Delphi Medical Ltd in Blackpool. The community teams deliver a range of different programmes and have modified them to meet the needs of some of the most vulnerable people in society in a safe and secure way. Over 1,000 people started on our community programmes during the year and there was an average completion rate of 87%.

3

Acorn Recovery Projects Company number: 3360545

Report of the Directors (continued)

Achievements and Performance (continued)

Supported Housing

Acorn offers a range of supported housing options for people who have either completed our programmes or are in recovery and in need of extra support. The projects are facilitated by highly skilled housing support staff, boasting many years’ experience of working with customers with complex needs. Two of these projects work specifically with people who have experience of the criminal justice system and focus on breaking the cycle of addiction and criminality.

Whilst customers reside in our supported housing properties, there is a requirement for them to undertake voluntary work or further education and training, as our long-term aim is to promote resettlement and help individuals to live fully independent lives.

Acorn continue to work in partnership with local Councils to provide accommodation for individuals who present with complex issues and a history of homelessness. These properties offer a pathway into our abstinence-based project for those who are ready to take their first steps into recovery or alternatively the team will work with them to secure more suitable accommodation.

Prison in reach and outreach support

The contract with Delphi Medical at HMP Manchester and HMP Buckley Hall has continued to demonstrate positive outcomes with over 80 people accessing the RAMP programme. Due to the restrictions in place, the programme was adapted and delivered directly to individuals rather than in our usual group setting.

Social Enterprise

The social enterprise streams were created as a way of further extending volunteering and employment opportunities for the individuals we support and to enable us to demonstrate the social impact our services have on local families and communities.

Badkamra

Badkamra is a social enterprise film and media production company set up to promote recovery and provide inspiration to others. The team film real stories that evoke emotions and allow the viewer to connect to the person in front of the camera, hence their tag line ‘Pictures that Move’. Projects undertaken in year include work with veterans at Tom Harrison House on Merseyside.

Acorn Academy

Acorn Academy is unique and specialised in providing training in a range of areas for our customers, staff, professionals and organisations. The Academy is recognised as a centre for learning by the National Open College Network, and is able to develop bespoke training packages upon request. This year has seen the Academy continue to work wider in The Calico Group, specifically with Calico Enterprise and grow and widen their educational offer and enhance their reputation.

Current courses include:

Employees

Acorn are able to attract a diverse workforce. The diversity within Acorn Recovery Projects Limited is 55% (2021: 58%) male, 45% (2021: 42%) female, 12% (2021: 6%) who self-identify as disabled, 3% who self-identify as LGBTQ (2021: 3%) and 12% (2020: 8%) from a BAME background.

Financial Review

The income and expenditure and the company’s financial position at the end of the year are shown on pages 10 and 11 of the financial statements. In 21/22 turnover was £3.428m (2021: £3.729m) with net income of £51k (2021: £0.419m).

4

Acorn Recovery Projects Company number: 3360545

Report of the Directors (continued)

The Board

The Board continually reviews and assesses the skills and experience necessary to ensure the effective performance of their responsibilities. There has been one retirement from the Syncora Board that took place during the financial year as Members reached the end of their term of office, or for personal reasons. Three appointments have been made to the Syncora Board during the financial year and further appointments will be made as necessary.

The Board Members acknowledge that, notwithstanding the operation of a common board, each company is a legal entity in its own right, with its own distinct Board. When taking decisions, the Board members are under a duty to act in the best interests of each separate legal entity. In the event that circumstances arise in which Board Members are unable independently to fulfil their duties to each company, a written procedure is adopted. The Rules of each company provide guidance on dealing with any conflicts.

The Directors of Acorn Recovery Projects are listed on page 1. The Directors possess the skills and experience necessary to fulfil their responsibilities to the Company.

Calico carries out annual appraisals on an individual and collective basis which supports a Board development programme. This programme focuses on Board performance and ensuring the Board’s future effectiveness, together with tailored events on specific business-related topics where a training need has been identified. The Board and its committees obtain external specialist advice from time to time as necessary.

In 2020, Calico launched a New Generation Board Diversity Programme aimed at young people and minority ethnic backgrounds. Calico has successfully recruited 5 New Generation Board members to its Homes and Syncora Boards and the Nominations and Remuneration Committee. The Diversity programme is run in partnership with the Housing Diversity Network and there is a training programme that supports the members for 2 years with the aim that at the end of the programme the members will be ready to move into a Board member position.

The Board delegates the day-to-day management and implementation to the Chief Executive and Executive Directors. The Executive Team meet weekly and attend Board meetings.

Syncora has insurance policies that indemnify its Board members and Executive Officers against liability when acting for the Syncora group.

New Board Members as part of their induction undergo training on their legal obligations under charity and company law; the content of the Articles of Association; the board and decision-making processes; the business plan and recent financial performance of the company. The induction programme also covers Syncora’s strategy purpose, history, aims and objectives.

In order to operate effectively and ensure appropriate governance in business-critical areas the Board has delegated authority to two Group Committees.

The Non-Executive Directors are trustees for charity purposes.

Group Audit & Assurance Committee

The Group Audit & Assurance Committee met 4 times during the year. The Committee is responsible for reviewing the Calico Group’s risk management framework and reports to the Board on the effectiveness of the Company’s internal control arrangements. The Committee also review and consider the Calico Groups compliance with regulatory and legal requirements. The Committee addresses internal and external control issues, considering the scope of work of both internal and external audit activities including their appointments. It also considers the financial statements and recommends their approval to the Board.

Remuneration Committee

The Group Remuneration Committee met 4 times during the year. The Committee advises the Board on Non-executive member recruitment and remuneration and the appointment and remuneration of the Chief Executive and Executive Directors, taking independent advice and using consultants as necessary. The committee also sets the objectives for the Chief Executive and reviews performance against those objectives.

Pensions

Executive Directors and senior leadership are eligible to join the Social Housing Pension Scheme. The Executive Officers participate in the scheme on the same terms as all other eligible staff. Full details of the scheme are given in note 7 to the financial statements.

Risk Management

As part of the Calico Group approach to risk management, Acorn has in place a risk map which is reviewed by the Syncora Board on a quarterly basis. The directors have undertaken a review of the major strategic risks faced by the charity and have put in place systems to mitigate Acorn’s exposure to the major risks.

Fundraising Practices

The charity had no fundraising activities requiring disclosure under s162A of the Charities Act 2011.

5

Acorn Recovery Projects Company number: 3360545

Report of the Directors (continued)

Principal Risks and Uncertainties

Regular reporting on control issues provides assurance to successive levels of management and to the Board. It is supplemented by regular reviews by internal audit that provide independent assurance to the Board. The arrangement for review includes a rigorous procedure which is monitored internally and ensures corrective action is taken in relation to any significant control issues. The business has implemented a programme of control and risk self-assessment and is further embedding this at different levels of the organisation, which will continue to strengthen each business areas’ control arrangements.

Utilising this approach the Acorn business has identified the following risks to the successful achievement of it’s objectives:

Plans for Future Periods

Acorn’s priorities for 2022-3 include the development of the residential rehabilitation model which it is hoped will include the acquisition of a new dedicated site. Acorn will review the community offer to ensure group programmes remain relevant and inclusive. New contracts which went live in April will be developed and new business opportunities will be explored across Lancashire, Greater Manchester and other parts of the North West.

Acorn has a Business Development strategy that will see the charity balance the risk of current contracts with new and more diverse models of delivery and services, that will make us attractive to commissioners and allow us to manage the business robustly.

Charity Code of Governance

In 2021, the Board approved that Syncora and its subsidiaries would adopt the 2020 Charity Governance Code for the year ended 31 March 2022.

The Board confirm compliance with the Code for the full year ended 31 March 2022. The Board have agreed areas of further focus to develop in 2022 focussing on Safeguarding, Equality, Diversity and Inclusion, and Customer Voice.

Group Board member Grahame Elliott and Syncora Board member Karen Ainsworth have served on the Boards of subsidiaries, Acorn Recovery Projects and Safenet Domestic Abuse and Support Services Ltd respectively, for over 9 years. While this is not in line with best practice the Board and Audit & Assurance Committee agreed that for 21/22 Grahame and Karen continued in their role due to the extensive knowledge, experience and skill that they bring to the Boards. Karen will be stepping down from the Board in 22/23 and all Board terms will remain to be reviewed on an annual basis.

Reserves Policy

The Syncora Reserves Policy states that we will aim to keep unrestricted reserves to cover at least two months of variable expenditure to cover costs that are not contract related where we may not have notice of changes. The current level of free reserves is a negative of £119,000 (2021: negative of £198,000). This is a calculation of the unrestricted funds less the tangible & intangible fixed assets. We have not designated anything for essential future spending. Our targeted free reserves level is £123,000. The company is committed to reduce the under provision over the next 5 years, and this is due to be reviewed again in 2023. This will take place through positive trading leading to the company holding the targeted unrestricted reserves.

The Directors will monitor and review the level of reserves annually, in line with guidance issued by the Charity Commission. As a result of this, we do not have to retain large reserves and the current level of unrestricted reserves is sufficient for this. However, reserves are also built up to enable investment in accommodation to grow and expand the service. This will be over and above those reserves represented by fixed assets within the charity’s balance sheet.

Going Concern

The Board is confident that Acorn Recovery Projects remains a Going Concern for the following reasons:

The Board confirms it has a reasonable expectation that the organisation and subsidiaries have adequate resources to continue in operational existence for the foreseeable future. Accordingly, it continues to adopt the going concern basis in preparing the financial statements.

6

Acorn Recovery Projects Company number: 3360545

Report of the Directors (continued)

Directors’ responsibilities statement

The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and its incoming resources and application of resources, including its income and expenditure for the year.

In preparing those financial statements, the directors are required to:

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Charities Act 1993 and the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Crowe U.K. LLP were appointed as auditors in November 2021, following a tender process, for a period of 3 years with an option for a further 2 years.

All of the current directors have taken all steps that they ought to have taken to make themselves aware of any information needed by the company’s auditors for the purpose of their audit and to establish that the auditors are aware of that information.

The directors are not aware of any relevant audit information of which the auditors are unaware.

The report of the directors has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Approved by the directors and signed on their behalf by:-

Company Secretary 5 September 2022 For the year ended 31 March 2022

7

Acorn Recovery Projects Company number: 3360545

Independent Auditor’s Report to the members of Acorn Recovery Projects

Opinion

We have audited the financial statements of Acorn Recovery Projects for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Statement of Financial Position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

8

Acorn Recovery Projects Company number: 3360545

Independent Auditor’s Report to the members of Acorn Recovery Projects (continued)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page X, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act 2011 and employment tax legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and completeness of income. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases. Our audit approach for income was to being our testing from source documentation such as grant and contract agreements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Vicky Szulist Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor Manchester 30th September 2022

9

Acorn Recovery Projects Company number: 3360545

Statement of Financial Activities For the year ended 31 March 2022

Unrestricted
Restricted
Note
funds
funds
£’000
£’000
Income
Donations and legacies
2
66
-
Rent receivable
936
-
Income from charitable activities
3
2,426
-

Total income
3,428
-

Expenditure
Expenditure on charitable activities
4
3,377
-

Total expenditure
3,377
-

Net income for the year
51
-

Net movement in funds
51
-

Reconciliation of funds
Total funds brought forward
822
-
Total funds carried forward
18
873
-
 2022
Total
£’000
66
936
2,426

3,428

3,377

3,377

51

51

822

873
 2021
Total
£’000
479
947
2,303

3,729

3,310

3,310
419

419

403

822

All of the activities in the financial period are derived from continuing operations.

All recognised gains and losses are included in the statement of financial activities.

The notes on pages 12 to 21 form part of these financial statements

10

Acorn Recovery Projects Company number: 3360545

Statement of Financial Position

At 31 March 2022

Note
Fixed assets
Tangible assets
9
Intangible assets
10
Investments in subsidiaries
11

Total fixed assets
Current assets
Debtors
12
Cash and bank balances
Creditors: amounts falling due within
one year
13
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Net assets
Funds
Unrestricted funds
General fund
18
Total charity funds		 31 March 2022
£’000
£’000
954
-
38
992
867

49
916
864
52
1,044
171

873

873

873
 31 March 2021
£’000
£’000
957
25
38
1,020
1,196
127

1,323
1,325


(2)

1018
196
______
822
.
822

822
.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small company’s regime.

The notes on pages 12 to 21 form part of these financial statements.

The financial statements were approved by the directors and authorised for issue on 5 September 2022 and signed on their behalf by:

Company Secretary 5 September 2022 For the year ended 31 March 2022

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Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements

Acorn Recovery Projects is a private company limited by guarantee, registered with the Charities Commission, incorporated in England and Wales. The registered office is Centenary Court, Croft Street, Burnley, Lancashire, BB11 2ED.

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) (Updated 1 January 2019) – (“Charities SORP (FRS 102)”), the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the Companies Act 2006, and are presented in sterling £’000 for the year ended 31 March 2022.

The charity meets the definition of a public benefit entity under FRS 102.

Reduced disclosure exemptions

The charity meets the definition of a qualifying entity under FRS 102 and has taken advantage of the disclosure exemptions available to it in respect of presentation of a statement of cash flows and financial instruments.

Basis of consolidation

The financial statements of the charity are consolidated in the financial statements of The Calico Group Limited, see note 21. The charity has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. These financial statements present information about the charity as an individual entity and not about its group.

Going concern

The Board is confident that Acorn Recovery Projects remains a going concern for the following reasons:

The Board confirms it has a reasonable expectation that the organisation and subsidiaries have adequate resources to continue in operational existence for the foreseeable future. Accordingly, it continues to adopt the going concern basis in preparing the financial statements

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Other key sources of estimation and assumptions:

Goodwill and intangible assets.

The company establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. Where, in exceptional circumstances, the useful life of goodwill cannot be determined, the life will not exceed 10 years.

Fees

Fees in respect of service level agreements are recognised within the statement of financial activities on an accruals basis. Income received in advance of services being performed is deferred.

Donations, legacies and other voluntary income

Donations, legacies and any other form of voluntary income or benefit to the charity are recognised within the statement of financial activities when received.

Grants

Grants receivable are recognised within the statement of financial activities in the year that they relate to.

Grants received to fund the purchase of fixed assets are recognised as incoming resources on entitlement of the grant.

Rent receivable

Rental income is accounted for on an accruals basis.

12

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

1 Accounting policies (continued)

Restricted and unrestricted funds

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.

Unrestricted funds are donations and other incoming resources receivable or generated for the object of the charity without further specified purpose and are available as general funds. This includes the funding received for the main projects from local authorities.

Expenditure allocation and apportionment

Expenditure is recognised on an accruals basis as a liability is incurred. Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, certain other expenses which are not wholly attributable to unrestricted funds are apportioned to restricted funds on a time spent basis.

Cost of generating funds comprises the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the charity.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated losses. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful life of the property.

Depreciation has been provided on all tangible fixed assets at rates calculated to write off the cost of each asset evenly over its estimated useful economic life, as follows:

Motor vehicles - 25% pa
Computer equipment - 5-33% pa
Fixtures, fittings and equipment - 10-33% pa
Freehold improvement - 20% pa
Freehold property - 75 years
Leasehold property - 75 years or the term of the lease (which ever is lower)
Plant - 20-33% pa

Intangible assets

Goodwill arising on the acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Subsequently, goodwill is carried at cost less accumulated amortisation and any impairment losses.

Amortisation is calculated on a straight line basis over the useful economic life.

Taxation

The company is non profit making and as a charity is exempt from Corporation Tax.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Reverse premiums and similar incentives received on leases to enter into operating lease agreements are released to Statement of Financial Activities over the term of the lease.

Financial instruments

Financial assets and liabilities are initially measured at the transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.

13

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

2 Voluntary income

Unrestricted Restricted 2022 2021
funds funds Total Total
£’000 £’000 £’000 £’000
Donations and similar incoming resources 66 - 66 479

During the year, voluntary income included:

All activities in 2021 were unrestricted.

Unrestricted
Restricted
funds
funds
£’000
£’000
Reduction & motivational programmes
767
-
Tier 4 treatment SPOT
1,330
-
Supporting people services
193
-
Social Enterprises:
Education/training & employment
136
-

Total income from charitable activities
2,426
-

Contract income
1,496
-
Activities from generating funds
930
-

2,426
-
 2022
Total
£’000
767
1,330
193
136

2,426

1,496
930

2,426
 2021
Total
£’000
784
1,272
106
141
_
2,303
1,495
808
_
2,303

All activities in 2021 were unrestricted.

14

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

4 Expenditure on charitable activities

2022
Therapy
£'000
Employee costs
1,498
Client and volunteer expenses
63
Rents, rates, insurance and
utilities
70
Property costs
11
Other staff costs
38
Printing, stationary and postage
14
Finance costs
1
Legal and professional fees
10
Depreciation & amortisation
39
Transport costs
14
Bad debt expense
(6)
H&S, fire & security
12
Recharges and write offs
60
Housing maintenance
5
Allocate support costs
91
Governance Costs
Audit fees
3
1,923


Net (income)/expenditure
This is after charging:-
Auditor’s remuneration
Depreciation of tangible fixed assets
Amortisation of intangible fixed assets
Operating Leases – Land and buildings
Operating Leases – Other		 2022
Housing
£'000
518
17
302
84
31
3
6
2
11
6
-
82
135
50
204
3
1,454
Note
9
10		 2022
Total
£'000
2,016
80
372
95
69
17
7
12
50
20
(6)
94
195
55
295
6
3,377		 2021
Therapy
£'000
1,502
47
91
53
59
10
2
29
62
15
(15)
13
125
2
169
1
2,165		 2021
Housing
£'000
502
18
277
40
10
4
5
-
11
4
-
85
72
19
97
1
1,145
2022
£’000
6
26
25
242
24
 2021
Total
£'000
2,004
65
368
93
69
14
7
29
74
18
(15)
98
197
21
266
2
3,310
2021
£’000
3
23
50
76
20

5 Net (income)/expenditure

15

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

6 Employees

The average monthly number of employees during the year, analysed by function, was as follows:

Counselling and therapy
Finance and administration
Business Development
Housing Support Staff
Staff costs consist of:
Salaries
Social security costs
Pension contributions
Aggregate number of full time equivalent staff whose remuneration
exceeded £60,000 in the period:
Between £70,000 - £80,000
Board members and Executive Officers
The aggregate emoluments paid to or receivable by non-executive Directors
The aggregate emoluments paid to or receivable by executive officers
The emoluments paid to the highest paid officer excluding pension contributions
Pension cost for executive officers
The aggregate amount of any consideration payable to / (receivable from)
third parties for making available the services of non-executive Directors
Total key management personnel remuneration		 2022
Number
53
4
5
24

86

£’000
2,008
181
47

2,235

2022
Number
-

2022
£’000
33
59
52
1
(25)
67
 2021
Number
55
8
2
24

89

£’000
2,008
188
46
2,242

2021
Number
1

2021
£’000
38
83
64
2
(28)
93

7 Board members and Executive Officers

Directors’ emoluments

Directors are members of the Syncora Limited Board a holding company providing a common board for each of its subsidiaries, which are SafeNet, Acorn and Calico Enterprise. These members received a total remuneration of £33,000 in 2022 (2021: £38,000).

The Syncora Board receive an annual allowance. The Chair receives £6,000 and all other Board members £3,500.

8 Interest payable

Bank mortgages
Other bank		 2022
£’000
5
-


5
 2021
£’000
5
-

5

16

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

9 Tangible Fixed assets

Cost or Valuation
At 31 March 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 31 March 2021
Charge for period
Disposals
At 31 March 2022
Net Book Value
31 March 2022
31 March 2021		 Freehold
Leasehold
Fixtures and
Freehold
property
property
fittings improvements
£’000
£’000
£’000
£’000
533
485
158
109
-
-
23
-
-
-
(96)
-


533
485
85
109


60
34
125
109
6
5
15 -

-
- (96) -


66
39
44
109


467
446
41
-



473
451
33
-


 Total
£’000
1,285
23
(96)

1,212

328
26
(96)

258

954

957

All assets are held for direct charitable purposes.

The freehold relating to the leasehold property is owned by the subsidiary Alcohol and Drug Abstinence Service (Management) Limited (see note 11).

The freehold property at Magda Road and Newton Place acquired in 2009 are subject to a fixed charge. Further details are disclosed in note 18.

10 Intangible Fixed assets


Cost or Valuation
At 31 March 2021
At 31 March 2022

Amortisation
At 31 March 2021
Charge for period

At 31 March 2022

Net Book Value
31 March 2022


31 March 2021		 Goodwill
£’000
251
_____
251

226
25
_____
251

-

25





Total
£’000
251
_____
251

226
25
_____
251

-

25

The goodwill relates to Delphi acquisition (Note 11) and is being amortised over 5 years.

17

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

11 Investments in subsidiaries

ADAS
Delphi		 2022
£’000
-
38
38
 2021
£’000
-
38
38

ADAS

The charity owns 100% of the issued share capital of Alcohol and Drug Abstinence Service (Management) Limited, a company incorporated in England and Wales (Company No. 6545855). This company was formed to hold the freehold interest in one of the leasehold properties occupied by the charity. At 31 March 2022, the non-trading company had net assets of £1 (2021: £1) and allotted share capital of £1 (1 £1 ordinary share).

The freehold interest in the property occupied by the charity was assigned to Alcohol and Drug Abstinence Service (Management) Limited during April 2008 when a lease back to the charity was put in place at a peppercorn rent.

Delphi

The charity owns 100% of the issued share capital of Delphi Medical Consultants Limited (Company No. 6944767) and Delphi Medical Limited (Company No. 69014150), both companies incorporated in England and Wales. The companies provide medical treatment for drug and alcohol abstinence.

At 31 March 2022:

12 Debtors ( All amounts shown under debtors fall due for payment within one year)

Trade debtors
Intercompany balance
Prepayments
Staff loans & deposits
Creditors: amounts due within one year
Bank loans (secured)
Trade creditors
Other taxes and social security
Deferred Income
Accruals
Intercompany balances
Intercompany loans


Deferred income
Balance at 1 April
Amount released to income
Amount deferred in the year

Balance at 31 March		 2022
£’000
420
425
21
1
_
867

2022
£’000
30
18
52
46
90
128
500

864

2022
£’000
158
(158)
46

46
2021
£’000
561
579
48
8
_
1,196

2021
£’000
35
41
51
158
51
489
500

1,325

2021
£’000
31
(31)
158

158

13 Creditors: amounts due within one year

14 Deferred income

Deferred income comprises NHS contract funds received in advance to deliver the services they relate to and an element of rent charged for the week commencing 28 March 2022.

18

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

15 Creditors: amounts falling due after more than one year

Bank loans (secured)

Bank loans payable by instalments as follows:-
Between two and five years
After five years		 2022
£’000
171
_
171

122
49

171
 2021
£’000
196

196

144
52

196
Loan account
no.		 Expiry Interest Rate % Legal charge Balance £
44461770 April 2028 2.56% Rosemary Court 200,871

The total bank loans of £200,871 (2021: £231,228) are secured by legal charges on Rosemary Court leasehold property. At 31 March 2022, this property has a net book value of £446,000 (2021: £451,050).

16 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
£’000
£’000
Fixed assets
992
-
Current assets
916
-
Current liabilities
(864)
-
Long term liabilities
(171) -



Net assets at 31 March 2022
873
-
Total
funds
£’000
992
916
(864)
(171)

873

All activities in 2021 were unrestricted.

17 Financial commitments

The company had remaining commitments under non-cancellable operating leases as set out below:

2022 2021
Land and Land and
buildings buildings
£’000 £’000
Expiry date:
In less than one year 144 104
In two to five years 61 54
Equipment Equipment
£’000 £’000
Expiry date:
In less than one year - 4
In two to five years - 8
Vehicles Vehicles
£’000 £’000
Expiry date:
In less than one year - 4
In two to five years - 13

19

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

18 Movement in funds

Unrestricted funds
Total funds		 At 31
March
2021

£’000
822
822		 Incoming
resources
£’000
3,428

3,428		 Outgoing
resources
Transfers
£’000
£’000
(3,377)
-


(3,377)
-

 At 31
March
2022
£’000
873

873

All activities in 2021 were unrestricted.

19 Contingent Liability

NHS National Treatment Agency for Substance Misuse - During the year ended 30 September 2010 the charity was awarded and received two grants totalling £670,000, under the Department for Health 2009–2010 Capital Funding Scheme, to acquire two further houses for accommodation. These grants are repayable on a pro-rata basis over 35 years from acquisition date if the charity ceases to provide Recovery Community Services in accordance with those currently offered within those two properties. The potential repayment is secured by a fixed charge on these properties and is restricted to the pro-rata proceeds on the sale of either property £468,000 (2021: £473,000).

20 Company limited by guarantee

The company has no share capital. The liability to the members in respect of the guarantee as set out in the company’s memorandum of association is limited to £1 per member. The number of members at the year end was 1 (2021: 1).

21 Parent undertaking

The Company is a 100% subsidiary of Syncora Limited (Company No. 11171831), a holding company registered in England and Wales.

The directors consider The Calico Group Limited (Company No. 08747100), a holding company and the 100% parent of Syncora Limited, to be the ultimate parent entity. Syncora sits between the legal entities and the Calico Group Board. The Calico Group Board has overall control to appoint and remove Syncora Board Trustees. The Calico Group comprises a number of innovative charities and businesses, working together to create social profit.

The Syncora and Calico Group consolidated accounts which include the results of the charity can be obtained from:

No other accounts include the results of this charity.

20

Acorn Recovery Projects Company number: 3360545

Notes to the Financial Statements (continued)

22 Related party transactions

Sales and purchases of goods and services between related parties are at an arm’s length basis at normal market prices. Any outstanding balances are unsecured and interest free, unless stated otherwise. Calico Homes Limited make purchase ledger and payroll payments on behalf of the Syncora Group and these amounts are then recharged back to the relevant entity.

Syncora Limited (“Group”), the parent company

During the year, Syncora recharged the company £20,000 (2021: £20,000).

At 31 March 2022, the company owed to Syncora £2,000 (2021: £1,000).

Calico Homes Limited (“Homes”), a fellow subsidiary of Group

During the year, Homes recharged office costs and rents amounting to £261,000 (2021: £257,000).

At 31 March 2022, the company owed Homes £101,000 (2021: £353,000).

Ring Stones Maintenance and Construction Limited (“Ring Stones”), a fellow subsidiary of Group

In 2019, Ring Stones lent Acorn £500,000 at an interest rate of base rate plus 1% and repayable by 31 March 2022.

At 31 March 2022, the company owed Ring Stones £500,000 (2021: £500,000).

Calico Enterprise Limited (“Enterprise”), a fellow subsidiary of Group

During the year, Enterprise supplied cleaning and catering services, and an internal apprenticeship amounting to £27,000 (2020: £5,000). Also, Enterprise granted £Nil (2021: £200,000) to the company.

At 31 March 2022, Enterprise owed the company £10,000 (2021: £11,000).

SafeNet Domestic Abuse and Support Services Ltd (“Safenet”), a fellow subsidiary of Group During the year, there were no transactions (2021: £Nil).

At 31 March 2022, the company owed Safenet £1,000 (2021: £88,000).

Delphi Medical Consultants Limited (“DMC”), a subsidiary of Acorn

The company and DMC deliver joint contracts. The money for these contracts goes into DMC.

At 31 March 2022, DMC owed the company £415,000 (2021: £568,000).

Delphi Medical Limited (“Delphi”), a subsidiary of Acorn

During the year, there were no transactions (2021: £Nil).

At 31 March 2022, the company owed Delphi £24,000 (2020: £47,000).

21